Final Rule: Automated Data Processing Equipment and Services; Conditions for FFP

ACTION TRANSMITTAL

OCSE-AT-80-07

DATE: April 8, 1980

TO: STATE AGENCIES ADMINISTERING CHILD SUPPORT ENFORCEMENT PLANS APPROVED UNDER TITLE IV-D OF THE SOCIAL SECURITY ACT AND OTHER INTERESTED INDIVIDUALS

SUBJECT: Automated Data Processing Equipment and Services; Conditions for Federal Financial Participation

ATTACHMENT: Final regulations which change 45 CFR Part 95, HEW requirements for Federal funding of State and local government's acquisitions of automatic data processing (ADP) equipment or services. The change raises the HEW prior approval threshold for most State and local government ADP acquisitions and services. It establishes standards of reporting to HEW that must be complied with for acquisitions that are within the new threshold amounts.

The revised Part 95:

1) requires States, and local governments through States to obtain prior approval from HEW for ADP equipment or services if the acquisition amount is over $100,000 or more in a twelve month period in combined Federal and State funds or $200,000 or more for total acquisitions.

2) requires prior approval from HEW for ADP equipment or services costing $25,000 to $100,000 if States, and local governments, plan to acquire the service noncompetitively from a commercial source.

3) requires States and local governments to notify HEW sixty (60) days in advance when it plans to acquire ADP equipment and services costing $25,000 to $100,000 even though FFP approval is not required.

4) deletes the nondiscrimination clause from service agreements.

The final revised regulation appeared in the Federal Register on Tuesday, February 19, 1980 in volume 45, page 10793.

REGULATION: 45 CFR Part 95

REFERENCE

COMMENT: Although the regulations have been published as

PERIOD final rule, consideration will be given to written comments and suggestions received within sixty (60) days of publication. Comments must be sent to the Acting Deputy Assistant Secretary for Management Analysis and Systems, Hubert H. Humphrey Building, Room 514 E, 200 Independence Avenue, S.W., Washington, D.C. 20201.

EFFECTIVE: February 19, 1980

INQUIRES TO: OCSE Regional Representatives

Office of Child Support Enforcement

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

Social Security Administration, Health Care Financing Administration, Office of Human Development Service, Office of Child Support Enforcement

45 CFR Part 95

Automatic Data Processing Equipment and Services; Conditions for Federal Financial Participation

AGENCY: Social Security Administration. Health Care Financing Administration, Office of Human Development Services, and Office of Child Support Enforcement, HEW.

ACTION: Final rule (with subsequent comment period).

SUMMARY: These regulations change the HEW requirements for Federal funding of State and local government's acquisitions of automatic data processing (ADP) equipment and services. The regulations are applicable as HEW programs authorized under Social Security Act titles I, IV, X, XIV, XVI (AABD), XIX, and XX.

The change raises the HEW prior approval threshold for most State and local government ADP acquisitions. The purpose of the changes is to:

Allow States to implement small systems or systems changes more quickly, while still keeping HEW informed of the States systems capabilities; and reduce paperwork requirements.

EFFECTIVE DATE: February 19, 1980. However, we are interested in public comments, and will consider comments received within 60 days of publication. If we receive substantive comments, HEW will reissue the regulations at a later date.

ADDRESSES: Send written comments to: Robert F. Sermier, Acting Deputy Assistant Secretary for Management Analysis and Systems, Hubert H. Humphrey Building, Room 514E, 200 Independence Ave.. SW., Washington, D.C, 20201.

FOR FURTHER INFORMATION CONTACT: Joseph Strand (202) 245-7488.

SUPPLEMENTARY INFORMATION: HEW published final regulations "Automatic Data Processing Equipment and Services - Conditions for Federal Financial Participation", Subpart F of 45 CFR Part 95 in the Federal Register, page 44851, on September 29, 1978. The regulations required that State and local governments obtain prior written approval by the Department for the acquisition of ADP equipment or ADP services when the acquisition cost exceeds $25,000.

In analyzing State requests received between December 1977 and February 1979, HEW found that 39 percent of the requests were for less than $100,000 and 61 percent were for more. In addition, the requests over $100,000 represent 99 percent of the dollarsrequired for proposed system acquisitions, Accordingly, HEW is making two changes to 45 CFR 95.600.

1. We are changing the present prior approval threshold of $25,000 in § 95.611(a) to provide that a State shall obtain prior written approval from the Department when it plans to acquire ADP equipment or services that it anticipates will have total acquisition costs of $100,000 or more in Federal and State funds over a twelve-month period, or $200,000 or more in Federal or State funds for the total acquisition, unless the acquisition is noncompetitive from a commercial source.

2. We are adding a § 95.612 that requires States to submit a brief prior notice of acquisition for ADP equipment and services that cost $25,000 to $100,000 over a twelve-month period.

In addition to these changes, we are making several minor amendments.

1. In § 95.605 "Definitions", we:

Added a definition for "Acquisition" to clarify that it covers commercial and State resources.

Amended the definition for "Approving component" to eliminate reference to the $25,000 in Federal and State funds, and

Amended the definition for "Service agreement" to delete the nondiscrimination clause, because HEW does not have a statutory basis for the requirement in a service agreement.

Paragraph (g) is renumbered Paragraph (f).

2. We corrected in § 95.613 the spelling of "agencies."

3. We changed § 95.615 to eliminate reference to "Subpart D" because HEW is going to move the access to records requirements to a different Subpart in 45 CFR Part 74.

4. We modified § 95.617(b) to limit the Department's rights to use software for Federal Government purposes.

5. We corrected in § 95.613 the expression "in the ADP" to read "in the advance planning document."

6. We added a § 95.633 that covers the HEW nondiscrimination requirements that State agencies must comply with when acquiring ADP equipment and services.

We are waiving the notice of proposed rulemaking and a delayed effective date as unnecessary and contrary to the public interest. These amendments reduce burdens on State and local agencies, while still ensuring proper Federal oversight. The proposed regulation, with the changes discussed above, is hereby adopted.

The Department has determined that this document does not require preparation of a Regulatory Analysis under Executive Order 12044.

(Catalog of Federal Domestic Assistance Program Nos. 13.679, Child Support Enforcement Program; 13.707, Child Welfare Services; 13.714, Medical Assistance Program; 13.724, Public Assistance State and Local Training; 13.748, Work Incentive Program Child Care-Employment Related Supportive Services; 13.754, Public Assistance-Social Services; 13.761, Public Assistance Maintenance, Assistance State Aid; 13.771 Social Services for Low Income and Public Assistance.)

Dated: September 22, 1979,

Leonard D. Schaeffer,

Administrator,

Health Care Financing Administration

Arabella Martinez,

Assistant Secretary for Human Development Services.

Stanford G. Ross,

Commissioner, Social Security

Stanford G. Ross,

Director, Office of Child Support Enforcement.

Approved: February 12, 1980,

Patricia Roberts Harris,

Secretary.

Part 95 of Title 45 of the, Code of Federal Regulations is amended to read as follows:

1. The table of contents is amended by adding § 95.612 and 95.633 as follows:

Specific Conditions for FFP

* * * * *

95.612 Prior notice conditions.

* * * * *

95.633 Nondiscrimination requirements.

§ 95.605 [Amended]

2. Section 95.605 is amended by adding a definition of "Acquisition" as follows:

"Acquisition" means acquiring ADP equipment or services from commercial sources or from State or local government resources.

3. Section 95.605 is amended by revising the definition for "Approving component" to delete the words "that exceed $25,000 in Federal and State funds",

4. Section 95.605 is amended by revising the definition for "Service Agreement" to eliminate Paragraph (f) and change Paragraph (g) to (f).

5. The first sentence in § 95.611(a) is amended as follows:

(a) General Acquisition requirement. A State shall obtain prior written approval from the Department when it plans to acquire ADP equipment or services that it anticipates will have total acquisition costs of $100,000 or more in Federal and State funds over a twelve-month period, or $200,000 or more in Federal or State funds for the total acquisition. A State shall also obtain prior written approval from the Department when it plans to acquire noncompetitively from a commercial source ADP equipment or services that cost more than $25,000 in Federal andState funds.* * *

* * * * *

6. A new § 95.612 is added as follows:

§ 95.612 Prior notice conditions.

(a) General $25,000 to $100,000 acquisition requirements. A State shall notify the Department (ASMB) when it plans to acquire ADP equipment or services that will cost $25,000 to $100,000 over a twelve-month period in Federal and State funds. The State shall send the prior notice of acquisition to the Department 60 days before the planned acquisition.

(b) Specific prior notice contents. The prior notice of acquisition is signed by the appropriate State official and explains:

(1) The need the acquisition is intended to satisfy;

(2) The nature and scope of the acquisition;

(3) Alternatives to the acquisition;

(4) If acquired from commercial sources, assurance that the State or local government will competitively acquire the ADP equipment or service;

(5) Total cost of the acquisition;

(6) The Social Security Act titles the State intends to charge for the acquisition and the estimated amount or percentages the State plans to charge to each title; and

(7) Any additional information the Department requires.

§ 95.613 [Amended]

7. Section 95.613 is amended by replacing "gencies" with "agencies".

§ 95.615 [Amended]

8. Section 95.615 is amended by eliminating the reference to "Subpart D".

9. Section 95.617(b) is amended as follows:

§ 95.617 Software and ownership right.

* * * * *

(b) Exemption. The Department reserves a royalty-free, nonexclusive and irrevocable license to reproduce, publish, or otherwise use and to authorize others to use for Federal Government purposes, such software, modifications, and documentation.

* * * * *

§ 95.619 [Amended]

10. Section 95.619 is amended by replacing "in the ADP" with "in the advance planning document".

11. A new § 95.633 is added as follows:

§ 95.633 Nondiscrimination requirements.

State agencies that acquire ADP equipment and services are subject to the nondiscrimination requirements in Parts 80, 84, and 90.

[FR Doc. 80-5178 Filed 2-15-80: 8:45 am]

Billing Code 4110-12-M